DEFENSE INDUSTRY: Trump Defense Budget Boost; Brazil to Spend More

Trump Seeks Defense Budget Boost.

(4GWAR photo by John M. Doyle)

President Donald Trump unveiled his fiscal 2018 spending plan Thursday (March 16) which sets the framework for a final budget request to Congress. If passed, the funding request would sharply increase military and homeland security spending while cutting the budgets of dozens of federal agencies and programs — including the State, Justice and Transportation departments.

In the wake of Trump’s so-called “skinny” budget, which will likely go through numerous amendments and changes before being voted upon by Congress, the Pentagon released a broad wish list on Thursday, which, the New York Times noted, signals what the Defense Department “would do with its proposed $54 billion windfall, filling its shopping cart with desires including Apache helicopters for the Army, anti-submarine planes for the Navy, fighter jets and more training for selected personnel.” The budget proposal calls for $639 billion in defense spending, up $52 billion from last year’s budget request. It also seeks another $2 billion for national security programs in other agencies, like safety oversight of nuclear weaponry by the Energy Department.

According to Politico’s Morning Defense, “The Trump White House is touting a boost in military spending as a major element of what it calls a ‘hard-power’ budget proposal as it seeks to win over hawkish Republicans who are pushing for an even bigger increase in investments in the military. However, GOP defense hawks have criticized the administration’s claim that its proposed defense expansion is “one of the largest in history,” noting the Trump plan is only a 3 percent increase above the Obama administration’s projection for next year, POLITICO reported.

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Brazil Budget Battle.

Trump isn’t the only leader in the Americas planning to boost defense spending while cutting spending elsewhere in the budget.

Brazilian special operations troops.

Brazilian President Michel Temer is increasing the country’s military budget by 36 percent, local media reported Monday (March 13). The defense hike comes just months after Temer pushed the approval of a controversial constitutional amendment to freeze public spending for the next two decades, according to the Venezuela-based news site, teleSUR.

Citing a report by Brazilian newspaper, Folha de Sao Paulo, teleSUR said data compiled by Brazil’s Senate indicated military spending for this year is set to hit nearly $3.1 billion. The changes come after Brazil’s military budget was slashed under former President Dilma Rousseff’s government. In 2015, the finance minister at the time, Joaquim Levy, drastically reduced investment in the defense sector. From the US$ 3.8 billion expected to be spent in the area, it only allocated $2.1 billion, according to Senate data.

Temer’s move to increase military spending also comes after the approval of a constitutional amendment to freeze public spending for two decades. The reform ties any increase to social assistance programs to the previous year’s inflation rate, rather than GDP. This will effectively limit what all future governments can spend on health, education and social welfare for at least 20 years, according to teleSUR.

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Industry News:

Australian Drone Program

California-based unmanned aircraft maker General Atomics has launched its Team Reaper Australia group to meet the Australian military’s search for a new drone, according to C4ISRNET.

Turkey Defense Procurement

A Turkish government report on defense procurement for the next five years urges the input of domestic industry to become a global player.